Franklin Templeton announces a tax-free dividend in Franklin India tax shield
By Our Corporate Bureau | 06 Jan 2007
Mumbai: Franklin Templeton Investments (India), has announced a tax-free dividend of Rs 8 per unit on face value of Rs 10 in its open-end equity linked savings scheme Franklin India Taxshield. All investors registered in the Dividend Plan as of January 10, 2007, will receive this tax-free dividend.
In addition to the tax-free dividend, investment of upto Rs 1 lakh during 2006-07 would also be eligible for tax benefits under Section 80 C of the Income Tax Act. (Pursuant to payment of dividend, the NAV of the fund would fall to the extent of payout).
The record date for the dividend is January 10, 2007, and any purchases on or before this date will be eligible for the dividend.
Under the dividend reinvestment option, the dividend declared will be reinvested at the NAV of January 12, 2007 and unit holders will be allotted additional units for the dividend amount.
The fund manages over Rs 347 crore of assets for over 139,000 investors. Since its inception, the fund has been able to deliver consistent performance as can be seen from the table below:
| 1 year | 3 years | 5 years | Since inception | |
| Taxshield | 27.2% | 35.7% | 42.0% | 38.8% |
| S&P CNX 500 | 34.0% | 29.1% | 36.3% | 22.3% |
| (Data as on 29 December 2006) | ||||